ABSTRACT
Following the 1997–1998 Asian financial crisis, the development of local currency bond markets has become a policy priority for many Asian economies. The Association of Southeast Asian Nations plus the People’s Republic of China (PRC), Japan, and the Republic of Korea (ASEAN+3) Finance Ministers introduced the Asian Bond Markets Initiative (ABMI) to develop efficient and liquid local currency bond markets in member countries. National policy efforts coupled with regional initiatives focused on developing local currency bond markets to balance their highly bank-dominated financial systems, reduce heavy reliance on foreign debts, 1 and mobilize the region’s excess savings more effectively for development finance.
